BCO 44 - January 2008 | Environmental and Energy Study Institute

The Orton Family Foundation is inviting proposals from small cities and
towns and partnering organizations interested in and committed to plans
for future growth inspired by their community’s “heart and soul”
attributes. EESI would be interested in discussing collaboration with a
community that identifies renewable energy, especially bioenergy, or
energy independence as part of its “heart and soul”. The Foundation
anticipates selecting two (2) communities in northern New England and
Massachusetts and two (2) communities in the northern Rocky Mountain
West in 2008. Each selected community will be eligible for up to
$100,000 in supporting funds over two years.

More information on the grant program can be found at www.orton.org/rfp. Those interested in collaborating with EESI on a renewable energy component should contact Ruth Lampi at rlampi@eesi.org or (202) 662-1887.

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Commentary

South Carolina’s Biomass Boom
By the South Carolina Energy Office

South Carolina has long had a strategic disadvantage compared to many
other states because it does not contain any coal, oil, or natural gas.
Recently, however, state officials and various organizations have begun
to recognize renewable energy – particularly biomass energy – as a
previously untapped opportunity to decrease dependence on fossil fuels
and significantly invest in the state’s declining rural economy.

In 2006, the South Carolina Energy Office created the South Carolina
Biomass Council, with assistance from a U.S. Department of Energy
Special Projects grant. Over one hundred stakeholders joined a dialogue
about biomass, including electric utilities, research universities such
as Clemson University and the University of South Carolina, several
state agencies, numerous private businesses, and the Palmetto State
Clean Fuels Coalition, a transportation fuels group previously formed
by the South Carolina Energy Office by leveraging funds from the U.S.
Department of Energy.

Since the formation of the South Carolina Biomass Council, the state
legislature has passed sweeping incentives for development, production
and use of renewable energy.

These incentives include:

Tax credits of 20 cents per gallon for production of conventional biodiesel
and ethanol and 30 cents per gallon for production from alternative
feedstocks in addition to a 25 percent tax credit for the cost of
purchase of renewable fuel production equipment;
Taxcredits of up to $100,000 for research and development of renewable
fuel feedstocks best suited for South Carolina, such as cellulosic
ethanol and algae-based biodiesel;
Tax credits for the purchase and installation of equipment to produce
electricity and other process energy from biomass resources including
wood and wood waste, agricultural and animal waste, sewage, landfill
gas, and other organic materials;
Incentive payments for biomass energy users ranging from one cent per kilowatt-hour to 9 cents per therm;
A requirement that all state-owned diesel pumps provide a minimum of five percent biodiesel;
Tax rebates of up to $300 for the purchase or lease of vehicles that are
flex-fuel (E85 ethanol), hybrid, electric, or fuel efficient with an
EPA city fuel economy of 30 mpg or greater;
Five cents per gallon incentive payments available for retailers selling B20 biodiesel and E85 ethanol; and
Funding for a biofuels marketing program to improve public awareness and for
ethanol and biodiesel testing equipment to monitor the quality of
alternative fuels produced and sold in the state.

A grants and low-interest loan program for renewable energy projects
was also implemented. The Renewable Energy Infrastructure Development
Fund provides grants for demonstration and research and development
projects. The low-interest loan program provides financing for
renewable energy equipment. The first rounds of grant awards were
announced on December 28th and funded eight projects – six of which
involved biomass energy demonstration and research and development
projects. Two additional rounds of proposals are scheduled for winter
and spring. Future rounds will be offered if additional state funding
is obtained. To learn more about the program, visit the South Carolina Energy Office website.

Additionally, virtually all electric utilities serving South Carolina now
offer, or will soon offer, the option for customers to purchase renewable
energy produced in the state. A significant portion of that demand is being
met through biomass energy – primarily landfill gas, wood waste, and
anaerobic digestion. These utility programs include Palmetto Clean Energy and Santee Cooper’s Green Power Program.

Furthermore, the South Carolina Energy Office has teamed up with other
state agencies and economic development organizations to prepare for new
private investment in the biomass energy field. The South Carolina Renewable Energy One Stop Shop
hosts a meeting each month to provide important background information,
step-by-step analyses of state incentives and requirements, and concise
answers to questions from potential investors.

Early signs of success include five biodiesel plants in production or under
construction, 50 retail outlets offering E85 fuel and 50 retail outlets
offering biodiesel to the general public. The University of South Carolina
just completed construction on a state-of-the-art biogasification facility
which produces the majority of energy for on-campus needs from waste wood
generated in the Columbia area.

For more information about these and other biomass energy efforts, please visit the South Carolina Energy Office website.

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Federal Initiatives Updates

New Legislation

H.R.4271
December 4, Rep. Shadegg (R-AZ) introduced H.R. 4271 to amend the Clean
Air Act to provide for a waiver of certain prohibitions and limitations
on fuels and fuel additives, such as ethanol, biodiesel, and other
biofuels. The bill was referred to the Committee on Energy and
Commerce.

S. 2423
December 6, Senator Feinstein (D-CA) introduced S. 2423 to facilitate
price transparency in markets for the sale of emission allowances. The
bill also charges the EPA with developing regulations to limit the
negative effects of excessive speculation in allowances, including
possible limits on the number of transactions in which an individual
can engage. The bill was referred to the Committee on Environment and
Public Works.

H.R. 4306
December 6, Rep. King (R-IA) and Rep. Latham (R-IA) introduced H.R.
4306 to amend the Clean Air Act and Internal Revenue Code of 1986 to
increase the use of ethanol and biodiesel. Among other provisions, this
bill increases the mandate for biodiesel by 30% and makes fuels
produced from woody biomass harvested in federal forests eligible for
inclusion in the renewable fuels standard. Although the total mandate
for renewable fuels is not changed from current law (36 billion gallons
by 2022), there are no carve-outs for advanced or cellulosic fuels.
Extension of tax credits for producers of alcohol fuels, biodiesel, and
renewable diesel are also included in the bill. The bill was referred
to the Committee on Energy and Commerce, and in addition to the
Committees on Ways and Means, and the Judiciary, for a period to be
subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee
concerned.

H.R. 4773
December 6, Rep. Young (R-AK) introduced H.R. 4773 to authorize the
Department of Energy to grants funds for the production of electricity
from renewable sources, including electricity produced from biomass.
The bill was referred to the Committee on Energy and Commerce.

S. 2520
December 19, Senator Johnson (D-SD), Senator Smith (R-OR), and Senator
Dorgan (D-ND) introduced S. 2520 to amend the Internal Revenue Code of
1986 to allow Indian tribal governments to transfer the credit for
electricity produced from renewable resources from the tribal
government to an individual or individuals with ownership interest in
the energy production facility. The bill was referred to the Committee
on Finance.

Department of Energy Selects Four Biofuels Projects to Receive Funding

On December 4, U.S. Department of Energy Secretary Samuel Bodman announced
four biofuels research and development projects that will receive a
total of $7.7 million in grants. “We are committed to expanding the
sustainable production and use of biofuels and these projects will help
develop cleaner methods for turning a wide variety of feedstocks into
fuel,” said Secretary Bodman. “Successful completion of these projects
stands to redefine the way we produce America’s fuels and follows the
President’s call to end our dependence to oil.”

Utah-based Emery Energy Company (EEC) will receive up to $1.7 million to
demonstrate a new way to mitigate tars and oils in biomass synthesis
gas. EEC will be working with Ceramatec, Inc. and the Western Research
Institute on the project. Iowa State University will receive up to $2
million to test an integrated biomass-to-liquids system that minimizes
waste water treatment in partnership with ConocoPhillips Company. The
Research Triangle Institute of North Carolina will receive up to $2
million to work with North Carolina State University and the University
of Utah to generate syngas from woody biomass. Alabama-based Southern
Research Institute will receive up to $2 million to use a 1 megawatt
thermal biomass gasifier to generate syngas in collaboration with Pall
Corporation, Thermochem Recovery International, and Rentech.

Source: http://www.energy.gov/news/5757.htm

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State Initiatives Updates

Pennsylvania Senate Passes Biodiesel Legislation to Create Subsidies, Set Content Requirements

On December 12, the Pennsylvania State Senate approved two bills to
support the biofuel industry. SB22 amends the Alternative Fuels
Incentive Act to give biodiesel producers a 75 cent per gallon subsidy,
expiring at the end of 2010. It also increases the subsidy for
production of other alternative fuels from 5 cents per 10 cents per
gallon. SB36, the Biodiesel Study and Production Incentive Act,
mandates that every gallon of diesel sold in the state must be composed
of at least 2 percent biodiesel, starting when state production of the
fuel reaches 60 million gallons. The required percentage of biodiesel
increases incrementally up to 20% when state production reaches 600
million gallons. Non-sulfur diesel derived from coal may be substituted
for biodiesel to meet these content requirements if the carbon emissions
are fully offset through carbon sequestration or the purchase of carbon
offsets.

Sources: http://www.centralpennbusiness.com/article.asp?aID=63897
http://www.legis.state.pa.us/CFDOCS/Legis/PN/Public/btCheck.cfm?txtType=PDF&sessYr=2007&
sessInd=1&billBody=S&billTyp=B&billNbr=0022&pn=0047 (pdf format)
http://www.legis.state.pa.us/CFDOCS/Legis/PN/Public/btCheck.cfm?txtType=PDF&sessYr=2007&
sessInd=1&billBody=S&billTyp=B&billNbr=0036&pn=0032 (pdf format)

Oklahoma Bioenergy Center Grants Noble Foundation $3 Million for Switchgrass, Alfalfa Research

TheSamuel Roberts Noble Foundation was allocated more than $3 million by
the governing board of the Oklahoma Bioenergy Center (OBC) to perform
six research and evaluation projects. Goals of the projects include
assessing the efficiency of nitrogen and water intake by various
bioenergy crops, evaluating which varieties of switchgrass are appropriate
for the Oklahoma region, establishing plans to integrate switchgrass into
existing agricultural systems, developing and applying research tools to
enhance the drought tolerance of alfalfa, and developing high-lignin biofuel
crops designed for particular conversion technologies.

The OBC is a state-funded initiative that supports research across the
bioenergy value chain, from growing crops to conversion processes. Researchers
at both the University of Oklahoma and Oklahoma State University received
$3.2 million in allocations. “We have taken a bold first step in making
Oklahoma a primary contributor in the biofuels effort and assisting in
our country’s overall effort to find energy independence,” said Oklahoma
Secretary of Energy David Flieschaker. “However, it will take a sustained
commitment from our state to continue the work of the OBC and those scientists,
researchers and agricultural specialists who are making the breakthroughs that
will lead to the ultimate success of the biofuels industry.”

Source: http://www.noble.org/Press_Release/2007/obc.html

Missouri Governor Unveils Plan to Promote Use of E85 and Hybrids

On January 3, Missouri Governor Matt Blunt announced a proposal to
increase the use of alternative fuel through state tax incentives. In
order to make E85 fuel (85% ethanol, 15% gasoline) available to more
consumers, $2 million in tax credits would be made available to help
offset the cost of installing E85 pumps at gas stations; currently only
92 of the state’s 4,312 stations dispense E85. The governor also
proposed an income tax credit of 25 cents per gallon for state residents
who purchase E85; the credits would subsequently decrease to 20 cents
and then 15 cents per gallon after the first year of the program, with
a maximum credit of $500 per taxpayer per year. The third part of the
plan is a 10 percent tax deduction (up to $1500 maximum) to encourage the
purchase of qualified hybrid vehicles.

“When combined with our efforts that we’ve already undertaken to increase
alternative energy production, these incentives will help to boost our
efforts to create a healthier environment and a stronger economy,” said
Governor Blunt. A Missouri law requiring gasoline to be blended with
10 percent ethanol took effect on January 1 of this year; the governor
also has signed an executive order to require at least 70 percent of
new vehicles purchased by the state Office of Administration be
flex-fuel vehicles capable of using E85. Republican State Senator
Luann Ridgeway expressed support for the plan as a way to reduce fuel
prices; “There’s not much that we here in the Missouri Legislature can
do to reduce the price that you pay at the pump… but this is one step
that we can take.”

Sources: http://www.chron.com/disp/story.mpl/ap/fn/5425917.html
http://www.gov.mo.gov/cgi-bin/coranto/viewnews.cgi?id=EEAAFlFpZZtBslNaXc

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Research and Technology Updates

Report Finds Weak Correlation between High Corn Prices and Consumer Food Price Inflation

On December 10, Informa Economics released a report that showed a “weak
correlation” between corn prices and overall consumer food prices. The
study, commissioned by the Renewable Fuels Foundation, found that only
four percent of change in the food consumer price index is due to
fluctuations in the price of corn. The majority of retail food costs
are for non-commodity items such as labor, packaging, transportation,
energy, advertising, rent, and taxes, collectively known as the marketing
bill. The growing ethanol industry was found not to be the only driver of
rising corn prices; a decreasing corn harvest between 2004 and 2006 combined
with increasing demand overseas also contributed.

“This analysis puts to bed the argument that a growing domestic ethanol
industry is solely responsible for rising consumer food prices,” said
Informa Chairman and CEO Bruce Scherr. “The statistical analysis
plainly details that energy-intensive activities such as processing,
packaging and transporting, as well as the cost of labor, have a far
greater impact on consumer food bills than the price of grain.”

The 55-page Informa report can be found here: http://www.informaecon.com/Renew_Fuels_Study_Dec_2007.pdf (pdf format).

Source: http://www.informaecon.com/NewsReleaseDec10.pdf (pdf format)

Scientists Study Termite Gut Microbes, Move One Step Closer to Efficient Cellulosic Ethanol Production

Research long anticipated by the biofuel industry, in which an international
team of scientists sequenced and analyzed the genomes of microbes
living in termite guts, was described in the November 22 edition of the
journal Nature. The termite has been studied for more than a
century for its ability to digest wood and plant material, but the quest
to find a commercially viable method of producing ethanol from such cellulose
has made this research even more important in recent years. Originating
in the Costa Rican rainforest, the termites studied were discovered to
host two major bacterial lineages in their hindguts: treponemes and fibrobacters.
Fibrobacters have relatives in cow rumen known to break down cellulose
into sugars, while treponemes are responsible for the fermentation of
the sugars.

“Termites can efficiently convert milligrams of lignocelluloses into
fermentable sugars in their tiny bioreactor hindguts. Scaling up this
process so that biomass factories can produce biofuels more efficiently
and economically is another story,” said Eddy Rubin, Director of the U.S.
Department of Energy’s Joint Genome Institute, one part of the research
team. “To get there, we must define the set of genes with key functional
attributes for the breakdown of cellulose, and this study represents an
essential step along that path.” The California Institute of Technology,
Verenium Corporation, the National Biodiversity Institute of Costa Rica,
and the IBM Thomas J. Watson Research Center also contributed to the project.

Source: http://www.timberbuysell.com/Community/DisplayNews.asp?id=1780

Lasers to Analyze and Improve Performance of Biomass in Combustion Systems

Dr. Terry Meyer, an assistant professor of mechanical engineering at Iowa
State University, is using sophisticated laser-based sensors to analyze
and improve the performance of biomass in combustion systems. The
sensors can capture millions of images per second in the combustion
systems of vehicles and heat- or power-generating plants; this data is
used to detect unburned fuel as well as where pollutants such as soot,
nitric oxide and carbon monoxide are being formed. “The goal is to
probe this harsh environment to provide the knowledge required to
reduce pollutant emissions and enable the utilization of alternative
fuels,” said Dr. Meyer.

The research project is being supported by the Grow Iowa Values Fund, a
state economic development program, and the Goodrich Corporation’s Engine
Components unit, a producer of fuel system components.

Source: http://www.sciencedaily.com/releases/2007/12/071205122527.htm

Kansas State Researchers Find High Levels of E. Coli in Cattle Fed Distiller’s Grains

Researchers at Kansas State University have found that cattle fed distiller’s
grains, a byproduct of ethanol production, carry twice as much E. coli 0157:H7
as do cows on other diets. E. coli 0157:H7 is present in healthy cattle
and is responsible for recent beef recalls and illnesses in humans who
acquired the bacteria through undercooked meat, raw dairy products, or
produce contaminated with cattle manure. "This is a very interesting
observation and is likely to have profound implications in food safety," said
Dr. T. G. Nagaraja, a professor of diagnostic medicine and pathobiology
of Kansas State’s College of Veterinary Medicine who is working on the
project.

The distiller’s grains market is important for the growing ethanol
industry, which brings in additional income by selling the high-protein
byproduct to feedlots. "Feeding cattle distiller's grain is a big
economic advantage for ethanol plants," Dr. Nagaraja said. "We realize
we can't tell cattle producers 'Don't feed distiller's grain.' What we
want to do is not only understand the reasons why 0157:H7 increases, but
also find a way to prevent that from happening."

Sources: Hegeman, Roxana. “YOUR HEALTH: Cattle fed distiller’s grain prone to e-coli.” The Journal-Standard 7 December 2007.
http://www.k-state.edu/media/newsreleases/dec07/distiller120407.html

Shell to Grow Marine Algae for Biodiesel

Royal Dutch Shell and HR Biopetroleum have formed a joint venture company
called Cellana to research the commercial viability of growing algae
for biodiesel. On December 11, Shell announced that construction of a
facility that will grow marine microalgae species in open-air ponds
would begin immediately at a site leased from the Natural Energy
Laboratory of Hawaii Authority. Oils extracted from the algae will be
refined into biodiesel.

Algae has been studied for decades as a potential biodiesel feedstock
because some species produce more than 15 times the amount of oil per
acre as produced by widely-used crops like soybeans and canola. Other
benefits of algae are its ability to grow in coastal areas unsuitable for
agriculture and its rapid absorption of carbon dioxide. The problem has
always been producing the aquatic species on a commercial scale at a reasonable
cost.

“Algae have great potential as a sustainable feedstock for production of
diesel-type fuels with a very small CO2 footprint,” said Dr. Graeme Sweeney,
Shell Executive Vice President Future Fuels and CO2. “This demonstration
will be an important test of the technology and, critically, of commercial
viability.”

Sources: http://news.independent.co.uk/business/news/article3244731.ece
http://www.shell.com/home/content/media-en/news_and_library/press_releases/2007/biofuels_cellana_11122007.html

Energy and Environmental Research Center Receives $2.9 Million for Three Bioenergy Projects

The Energy and Environmental Research Center (EERC) at the University of
North Dakota was recently awarded $2.9 million for three bioenergy
projects from Minnesota-based Xcel Energy’s Renewable Development Fund.
In one project, the EERC will study a new process for converting dairy
manure into biogas that will significantly reduce the amount of hydrogen
sulfide produced as a byproduct. Another project will be the demonstration
of the performance of a mobile gasification system that converts sawdust
into methanol; the methanol will be tested as a fuel for small-scale power
production. Finally, the EERC will develop and demonstrate a low-cost,
low-maintenance, biomass gasification system that will produce enough electricity
to power approximately three homes. “These projects exemplify the types
of renewable energy technologies the EERC is focused on right now,” said
Chris Zygarlicke, Deputy Associate Director for Research and manager of
the EERC’s Centers for Renewable Energy and Biomass Utilization. “Tremendous
effort is being put forth to develop new technologies that will utilize
locally available renewable fuels for the production of heat and power
where other traditional fuels are unavailable.”

Source: http://www.undeerc.org/newsroom/newsitem.asp?id=302

Gulf Ethanol Acquires Technology to Produce Powdered Cellulose

Texas-based Gulf Ethanol Corporation has acquired an exclusive license
to new cellulose feedstock processing technology developed by Meridian
BioRefining. The “vortex implosion disintegrator” process uses extreme
compression and sudden polarity shifts to convert plant material into a
fine cellulose powder that can then be efficiently refined into ethanol.
“The future of ethanol as a fuel additive and as an alternative to imported
oil depends on developing large scale ethanol production from cellulose –
rather than food-stocks,” said Gulf Ethanol
CEO J. T. Cloud.

Sources: http://biz.yahoo.com/bw/071206/20071206005274.html?.v=1
http://www.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20071210005682

BioGold Fuels Develops Efficient Process to Convert Municipal Solid Waste to Renewable Diesel

California-based BioGold Fuels Corporation has developed a low cost method
of producing renewable diesel from municipal solid waste (MSW). While
other biofuel producers spend up to 60% of the sales price on raw materials,
BioGold is paid to take the MSW that would otherwise get sent to a landfill.
The company then sorts the cellulosic material from the metals,
volatile organic compounds, and inorganic waste by means of mechanical
screening, magnetic separation, and eddy current separation. The
cellulose is converted into diesel through a highly efficient catalytic
depolymerization process. “Our processing plants will be one stop shops
for all forms of waste to be processed with resulting renewable energy
byproducts produced such as bio-diesel [sic] from this household garbage,”
said Steve Racoosin, BioGold CEO.

Sources: http://www.biogoldfuels.com/images/BGF-PressReleaseBDprod-12-17-07.pdf (pdf format)
http://www.biogoldfuels.com/technology.html
http://www.biogoldfuels.com/images/BGF-PressRelease-12-6-07.pdf (pdf format)

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News Briefs

2009 Ford Escape to Contain Bio-Based Seating

The Woodbridge Group, a Canadian automotive supplier, and Intier Automotive
Seating have announced the availability of BioFoam, a polyurethane foam
derived from plant seed oils such as soybean oils. The bio-based foam
will be introduced in the seat cushions of the 2009 Ford Escape. “Our
organization has been working on ways to make automotive seating more
environment-friendly for several years,” said Imtiyaz Syed, Intier Vice
President of Engineering. “BioFoam is a good example of a product
designed using natural, renewable and sustainable resources.” BioFoam
can include up to 40% bio-polyol and could also be used in head
restraints, arm rests, headliner and occupant protection products.

Sources: http://www.canplastics.com/issues/ISArticle.asp?id=76881&issue=11262007
http://www.woodbridgegroup.com/media/Pressrelease_BioFoamFordEsc.pdf (pdf format)

Germany Requires Renewable Energy Systems in Homes, Expects to Save Billions in Heating Costs

Germany has passed legislation expected to save 50 billion euros, or
approximately 74 billion U.S. dollars, in heating costs by the year
2020. The Renewable Energies Heating Law requires that all new homes
built in 2009 or later use renewable energy sources to meet 14% of
total household energy consumption for heating and domestic hot water.
"Using renewable energy for heating homes will not only significantly
cut greenhouse gas emissions but also reduce heating bills as oil and
gas prices surge," said Thomas Hagbeck of the German Federal
Environmental Agency. Beginning in 2010, existing homes also will be
required to derive 10% of their heating and domestic hot water energy
needs from renewables. The German government will grant 350 million
euros (US $517 million) per year to help homeowners make the transition
to renewable energy systems such as solar panels, wood pellet stoves,
boilers, and heat pumps.

Source: http://renewableenergyaccess.com/rea/news/story?id=50746

Web Resource Provides Data for Businesses, Investors in Oregon Forest Products Industry

The Central Oregon Partnership for Wildfire Risk Reduction (COPWRR) has
designed a new website that provides information on local forest and
rangeland restoration projects on federal lands. The Coordinated
Resource Offering Protocol (CROP) is intended to help businesses and
investors in their analysis of the feasibility of investing in
small-diameter woody biomass processing infrastructure. The
user-friendly website, which can be found at http://www.coic.org/copwrr/crop.htm,
provides data such as the volumes and weights of primary species
expected to be produced from each project, anticipated date the
material will be available, and NEPA status.

The COPWRR is a collaborative effort among various stakeholders in Central
Oregon to reduce wildfire risk, restore forest ecosystems, and create
jobs within local forest communities. Members of the partnership believe
the new resource has helped stimulate the more than $80 million in forest
products business investments recently made or currently in the works. The
CEO of Oregon-based Warm Springs Biomass, LLC, Cal Mukumoto, said, “We just
felt that CROP would be an excellent tool to help develop supply certainty
from public lands, while at the same time ensuring that the supply is sustainable
and coming from valid forest-restoration projects. It’s been a critical factor
in developing our biomass power facility.”

Source: http://www.timberbuysell.com/Community/Displaynews.Asp?Id=1829

Missouri Facility to Convert Sawmill Leftovers into Environmentally Friendly Heating Oil

A $24 million commercial industrial biofuel plant is under construction
by Dynamotive, a Canadian company, at a site in Willow Springs,
Missouri. The Dynamotive facility will use fast pyrolysis to convert
200 tons per day of wood byproducts and residue from local sawmills
into 34,000 gallons of BioOil, a substitute for conventional heating
oils used in boilers and furnaces. During combustion, BioOil emits
substantially fewer nitrogen oxides and sulfur oxides compared to
petroleum-based oil. "The commercialization of BioOil adds another
element to our arsenal of renewable fuels that can help address a
previously neglected segment of our oil use: industrial boiler fuels,"
said the Chairman of the Biomass Coordinating Council, Lt. Col. (Ret.)
William C. Holmberg. "As such it complements, rather than competes
with, fuel ethanol and biodiesel." The BioOil produced at this
facility is expected to be sold to commercial users.

Source: http://www.gizmag.com/biooil-to-fuel-industrial-sector/8494

Operations Begin at Northeast’s First Ethanol Plant

In late November, Western New York Energy, LLC began production at the
first ethanol plant in the Northeast. The $90 million biorefinery
located in Orleans County will produce 50 million gallons of ethanol
per year for the dense population centers of the East Coast – areas
with high demand for clean transportation fuels. “We are closer to the
ultimate ethanol markets,” said Western New York Energy Executive Vice
President Michael Sawyer. “Ethanol’s being consumed here on the East
Coast and the economics of moving ethanol are challenging. We do not
have to move our ethanol as far to the ultimate market as the typical
Midwestern plant.” The facility will employ about 50 people and
purchase millions of bushels of corn annually from New York farmers.

Source: http://www.timesunion.com/AspStories/story.asp?storyID=643524

VeraSun and US BioEnergy Announce Merger

On November 29, VeraSun Energy Corporation and US BioEnergy Corporation
announced a merger agreement which has been unanimously approved by the
board of directors of each company. If approved by shareholders and
found to meet anti-trust regulations, the combined company would have a
total of nine ethanol plants and seven more under construction. “This
merger is an opportunity for two leading companies in the renewable
fuels industry to capitalize on synergies and provide value for
shareholders,” said Donald Endres, Chairman, CEO and President of
VeraSun. “It also underscores the commitment of each company to
execute on its growth strategy to become a large-scale, low-cost
ethanol producer.” By the end of 2008, the new company would be
expected to have an annual production capacity of more than 1.6 billion
gallons of ethanol. Current total U.S. production capacity is 7.2
billion gallons per year.

Sources: http://www.reuters.com/article/pressRelease/idUS26693+29-Nov-2007+PRN20071129?symbol=VSE
http://www.ethanolrfa.org/industry/statistics/

Plan Unveiled for Closed-Loop Renewable Energy Park in New York

Owners of the Riverview Business Park in New York have unveiled an ambitious
plan to turn it into a closed-loop renewable energy park, where each
company’s waste would become another company’s input. An old Miller
brewery will soon reopen as an ethanol plant. The owners hope to see
the construction of a 25-30 megawatt biomass power plant that would use
the ethanol plant’s leftover grains as well as a soda bottler that
would use the ethanol’s carbon dioxide byproduct. The biomass power
plant, which could also run on wood, would in turn provide steam to the
ethanol plant and other park tenants. The lagoons of an existing
wastewater treatment plant could be used to grow algae for biodiesel;
the algae would also consume carbon dioxide produced by the power plant.

“What we were trying to do was look for different business applications
where one business’s effluent is the influent for another process,” said
Tim Barry, Senior Vice President of O’Brien & Gere, the engineering
firm hired to design the strategic plan for the renewable energy park.
“We try to close the loop, so you minimize or eliminate waste.” The
plan also includes solar, wind, and geothermal components, a fish farm
and dairy processing company, and a conversion of the wastewater
treatment plan to an anaerobic digester to make methane.

Usually, renewable energy developers would receive financial assistance
from the state government. However, incentives provided in conjunction
with New York’s renewable portfolio standard – which set a goal of producing
25% of state’s electricity from renewable sources by 2013 – go mostly to
power generators that sell their electricity to the grid. However, most
of the electricity generated at Riverview will be used by the companies at
the site. “Five years from now, if all we’ve done is build an ethanol plant,
it’s something we’ll be proud of, but at the same time I’ll be disappointed
because there are so many other opportunities that we need to pursue,” said
Riverview co-owner Eric Will II.

Source: http://www.syracuse.com/articles/news/index.ssf?/base/news-12/1195984780296940.xml&coll=1

Closed-Loop Ethanol Company Files for Bankruptcy, Cites Mechanical Failures

The country’s first closed-loop ethanol plant filed for bankruptcy on
November 30 due to mechanical failures. The E3 BioFuels facility
located in Mead, Nebraska opened in June 2007 and was praised for its
environmentally-friendly design. Manure from an adjacent cattle
feedlot was converted into methane by an anaerobic digester, reducing
the water and air pollution generated by most feedlots. The methane was
used to power the ethanol plant. In return, the protein-rich wet
distillers grain leftover from the ethanol refining process were fed to
the cattle.

R. J. Wilson, a spokesman for E3 BioFuels, said that the technology for
the closed-loop system is sound but that damage created from an explosion
in the boiler prevented the plant from ever reaching full production capacity,
thereby reducing profits. “We are into a gradual phase down of operations,”
Mr. Wilson stated. “And we’re hopeful that, through the reorganization of
Chapter 11, we will be able to come out the other side and be fully
operational.”

Sources: http://www.omaha.com/index.php?u_page=1208&u_sid=10198039
http://www.journalstar.com/articles/2007/12/03/news/nebraska/doc475426061ff5a375224251.txt
http://www.e3biofuels.com/technology/index.php

Midwest’s Largest Biodiesel Plant Celebrates Grand Opening

On November 30, the community of Algona, Iowa celebrated the opening of
the Midwest’s largest biodiesel production plant. The East Fork
Biodiesel facility will use soybean and other oils to produce 60
million gallons of biodiesel per year, bringing Iowa’s total annual
biodiesel production capacity to 250 million gallons. “This is another
big step toward Iowa’s renewable energy future,” said Randy Olson,
Executive Director of the Iowa Biodiesel Board. “Producing a
cleaner-burning fuel at an Iowa plant that will soon employ 36 people
in full-time jobs in Kossuth County is a great achievement.” The
biorefinery also employed more than 100 people during construction.

Sources: http://wallacesfarmer.com/index.aspx?ascxid=fpStory&fpsid=31201&fpstid=2
http://www.messengernews.net/page/content.detail/id/501446.html?nav=5010

Unmanned Biodiesel Station Looks to Attract Trucks and Bus Fleets

Seattle-based Propel Biofuels plans to open an unmanned biodiesel station
at a busy intersection in South Lake Union this March. Instead of a
convenience store and gasoline pumps, the station will consist of four biodiesel
pumps dispensing B99 (99% biodiesel, 1% diesel) and B20 (20% biodiesel,
80% diesel). Propel Co-founder and President Rob Elam hopes the multiple
pumps will encourage car and bus fleets to convert to the biofuel;
"We would love to get the new Microsoft buses running on biodiesel," he said.
One high-flow pump will accommodate trucks with large tanks.

Source: http://seattlepi.nwsource.com/business/343520_biofuel14.html

Akron, Ohio Turns Sewer Waste into Electricity

A new facility in Akron, Ohio is turning sewage sludge into electricity.
The $7 million facility uses anaerobic digestion to convert 5,000 tons
per year of solids from the city’s wastewater treatment plant into
biogas, which is then used to power an electric generator. The 335
kilowatts of electricity produced will be used to power the sewage
treatment plant as well as Akron’s composting plant. “We will save
money by not having to purchase an equivalent amount of electricity,
thus offsetting some of the $1.35 million we spend annually for
electricity here,” said Akron Mayor Donald Plusquellic.

The biogas system is the first of its kind in the United States. It was
developed by Schmack Biogas AG of Germany, which has 200 similar
operations in Europe and Asia. If the facility performs well over the
next 18 months, Akron city leaders are considering expanding its
operation to use all 15,000 tons of sludge produced by the city each
year. This will also allow them to shut down the compost plant, which
has triggered odor complaints from local residents.

Sources: http://www.renewableenergyaccess.com/rea/news/story?id=50876
http://www.ohio.com/news/12452251.html

New Florida Power Plant to Be Fueled by Waste Wood

On December 21, Biomass Gas and Electric LLC (BG&E) announced plans
to build a new electric power plant in Florida that will be fueled by
waste materials, including yard trimmings, bark, and residues from
pulping operations. The facility will utilize an integrated gasification
combined cycle (IGCC) system. This type of plant uses two processes (or cycles)
to maximize energy production. In the first cycle, synthetic gas is created
by superheating the biomass fuel in a low-oxygen environment (gasification).
This gas is then channeled through a turbine mechanism to generate electricity.
In the second cycle, the heat from the first process is directed to a boiler
and from there to a second turbine. This second process is able to capture
energy that would otherwise be lost as waste heat.

BG&E, based in Atlanta, has signed a 20-year power purchase agreement
with Progress Energy to buy the entire output of the plant, which is
scheduled to come online in 2011. The 75 MW plant will produce enough
electricity for approximately 46,000 homes.

Source: http://timberbuysell.com/Community/DisplayNews.asp?id=1967

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Writers: Jetta L. Wong, Jesse Caputo, and Laura Parsons
Editor: Carol Werner

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BCO 44 - January 2008


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